Hidden assets in a Scottsdale divorce: what can be found legally

Scottsdale desert home with a boat in the driveway as financial papers are reviewed in a divorce

Arizona is a community property state. Under A.R.S. 25-211, property either spouse acquires during the marriage is generally community property, with exceptions for things like gifts and inheritances. In a divorce the court divides the community, and A.R.S. 25-318 lets the judge take into account "excessive or abnormal expenditures, destruction, concealment or fraudulent disposition" of community property.

That last phrase is why private investigators get calls. If one spouse has moved money out of sight, the other spouse needs to prove it, and the judge needs something more than a feeling.

In Scottsdale the question comes up more often than you might think, partly because there is more to hide. Business owners, people paid in equity or bonuses, people with second homes, boats, or aircraft based at Scottsdale Airport. A spouse who has always handled the money has a head start.

Signs people notice first

None of these prove anything alone, but they are the usual reasons people pick up the phone:

the business suddenly has a terrible year, right when the divorce starts
statements stop coming to the house, or switch to paperless
a new LLC or trust appears, with a friend or relative as manager
large cash withdrawals, or payments to someone you have never heard of
a vehicle, boat or property quietly transferred to someone else
a lifestyle that does not match the income on the financial affidavit

What your lawyer does, and what a private investigator does

Your divorce lawyer has the most powerful tool: formal discovery. Through the court process, the other side can be required to disclose financial records, and subpoenas can reach banks and employers. A private investigator does not replace that. What a private investigator does is find the leads that tell your lawyer where to aim.

Public records

Real property in Maricopa County and elsewhere, recorded deeds and liens, Arizona Corporation Commission filings for new or existing companies, court cases, UCC filings, professional licenses. Aircraft registrations are searchable through the FAA's public registry by name, which is handy in a city with a busy general aviation airport.

Tracing entities

Spouses who hide assets often do it through a company. Following who formed an LLC, who manages it and what it owns can connect a "friend's" business back to the marital estate.

Lifestyle surveillance

Watching from public places to document what someone actually spends money on: the new car, the condo they keep visiting, the business they say is closed but is open six days a week. Photographs and dated notes help show the gap between what is claimed and what is real.

Interviews

Former employees, business associates and contractors sometimes know exactly where the money went.

The lines a private investigator will not cross

This is where people in a hurry get themselves into trouble, so it is worth being blunt.

A licensed private investigator will not obtain your spouse's bank or brokerage records by pretending to be them. Federal law (15 U.S.C. 6821) prohibits getting someone's financial information from a financial institution by false pretenses. Those records come through your lawyer and the court.

They will not install a tracker on a car your spouse drives. Arizona's stalking statute, A.R.S. 13-2923, covers using a GPS or other electronic device to monitor a specific person without authorization. Who owns the car does not make that simple, and a divorce makes it worse.

They will not record calls or conversations they are not part of. Arizona allows recording with the consent of one party, but a hidden recorder in the house to catch your spouse's calls is interception without consent under A.R.S. 13-3005, a felony.

And they will not log into your spouse's email or accounts, even if you know the password. Evidence obtained that way can end up hurting you more than your spouse.

Where Scottsdale divorces are heard

Divorces are handled by the Maricopa County Superior Court. Family cases are heard at several court sites, including the Northeast Regional Center at 18380 N. 40th St. in Phoenix and the Southeast Justice Center in Mesa, as well as downtown Phoenix. Your paperwork will say which. Bring your private investigator's findings to your lawyer well before any deadline for disclosure or trial, so they can be used properly.

Before you hire

Ask any private investigator how they work financial cases, what they can and cannot access, how they report, and whether they will testify if needed. Agree on the scope and budget up front; asset work can sprawl.

You can browse Scottsdale private investigators, including Urban Spy, or the wider North Valley list. Every private investigator listed in Arizona on Served & Found is a member of the Arizona Association of Licensed Private Investigators (AALPI). Our guide to what private investigators can and cannot do is worth five minutes first. For other local topics, see the Scottsdale page.

This is general information, not legal advice. Bring the questions about what is community property and what is separate to your divorce lawyer, and bring the receipts.

See the board: everyone in Scottsdale · private investigators only.